WASHINGTON, D.C. - NASA's inspector general says the agency is making "sustained progress" toward the goal of commercial crew transportation services, but it still faces "significant challenges" before it can certify any company as ready to transport its astronauts.

"The Commercial Crew Program Planning Office (Commercial Crew Office) plans to present its proposed acquisition strategy to Congress by late summer 2011," says the report signed by Inspector General Paul Martin and released today. "Mindful of national policy to limit the use of high-risk contracting vehicles such as noncompetitive and cost-reimbursement contracts, among the options NASA may consider is an acquisition strategy that relies on funded Space Act Agreements, competitive procurements, in particular fixed-price contracts, or a combination of both. "

The report identified a series of issues for NASA to address. They include, in the language of the press release accompanying the report:

clearly articulate to its commercial partners as soon as
possible all requirementsfor commercially developed systems and the
processes NASA will use for certifying such systems;

clearly articulate how it will mitigate potential conflicts
of interest that could provide an unfair competitive advantage to one company
over another; and

maintain robust communication with the emerging commercial
spaceflight industry to ensure that Agency contracting mechanisms strike the
appropriate balance between insight and oversight that will provide NASA with
sufficient information to certify commercial partners' systems and the companies
with the flexibility to be innovative;

expand coordination with the Federal Aviation
Administration (FAA) to ensure consistent standards are established for NASA
certification and FAA licensing.

maintain robust communication with the emerging commercial
spaceflight industry to ensure that Agency contracting mechanisms strike the
appropriate balance between insight and oversight that will provide NASA with
sufficient information to certify commercial partners' systems and the companies
with the flexibility to be innovative.